One of the top Warren Buffett’s stock is felling down. YTD -16% and today -4.75%
I aspected a lower volatility and I trade some options on KO but now I’m a little nervous for today’s little crash…
I’m wrong?
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- Don’t trade options
- It’s only 4.83% down today. It doesn’t qualify as a “little crash”
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Maybe people started to drink healthy? How about investing in ABI?
Quoting the Motley Fool:
A 5% drop isn’t worrisome. This top Warren Buffett stock is about as safe as you can get in the stock market, and investors can feel comfortable with where it’s holding right now. It’s bound to feel near-term pressure as the same challenges it’s been experiencing keep going, but it will ride them out with its strong balance sheet, popular brands, and long-term potential.
Stocks are stocks, volatility is part of the ride. I have no idea what happened but I’d expect it can keep going down, or stabilize, or rebounce.
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And as Charlie Munger would say to him -
“Just BTFD”
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From what I hear on FinTwit and elsewhere, a catalyst for the drop are the new weight loss drugs and the Walmart CEO mentioning they’re seeing a “slight pullback in overall basket.” Pepsi took a big hit as well, and even Nestle seems to be suffering.
All seems like short term noise to me.
I last bought $KO around the corona crash at multiples of around 20x PE and it’s in this territory again. Despite the only moderate growth the market usually values the stock at a close to 22 multiple.
I’d probably buy more now for my own portfolio if I were a little more liquid.
I’ll almost certainly buy some in my son’s portfolio where the company has a runway of several decades.
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